ICL Expands Further into North American Energy Storage Supply Chain by Partnering with Orbia Fluor & Energy Materials
TEL AVIV, Israel--(BUSINESS WIRE)--Sep 25, 2024--
ICL ( NYSE: ICL) (TASE: ICL ), a leading global specialty minerals company, today announced it has signed a memorandum of understanding (MOU) with Orbia Advance Corp., S.A.B. de C.V. (BMV: ORBIA*) Fluor & Energy Materials (OF&EM), as both companies continue to expand their presence in the North American battery materials supply chain. The MOU provides a framework for ICL’s Industrial Products division to supply phosphorus trichloride (PCl3) to OF&EM for its use in the production of LiPF6 – a critical raw material for lithium-ion batteries – at its planned St. Gabriel, La., manufacturing plant. ICL produces PCl3 at its plants in Gallipolis Ferry, W.Va., and in Bitterfeld, Germany, and is considered a leading global supplier of this high-quality material necessary for this essential battery component.
This partnership allows ICL and OF&EM to work together to advance electrification for both transportation and stationary applications and to bring the production of this critical component to North America. It will also enable them to optimize the performance, efficiency and safety of batteries used in consumer electronics, energy storage and other applications.
“Just as our Phosphate Solutions division’s expertise in specialty phosphates helped ICL expand into LFP battery materials – first in China and then in the U.S., – Orbia Fluor & Energy Materials’ proficiency and leadership in fluorine technologies has made them an ideal partner for LiPF6 solutions,” said Anantha Desikan, EVP and chief innovation and technology officer for ICL. “In addition, this second expansion into the North American energy storage supply chain further develops ICL’s battery materials operations to now include our Industrial Products division.”
“Strategic partnerships, like the one between Orbia and ICL, are critical for establishing a secure and resilient domestic supply chain for various types of lithium-ion batteries,” said Miki Oljaca, vice president of the Energy Materials Business for Orbia Fluor & Energy Materials. “Our planned LiPF6 facility in St. Gabriel, Louisiana, will be a first of its kind in the U.S. to produce this critical electrolyte material and will support a significant portion of the domestic annual electric vehicle production.”
In October of 2022, both ICL and OF&EM were awarded funding from the U.S. Department of Energy to expand domestic manufacturing of batteries for energy storage and electric vehicles (EVs), in order to ease reliance on materials and components imported from other countries. According to McKinsey Battery Insights, the lithium-ion battery chain, which includes LFP batteries, is expected to grow by over 30% annually from 2022 to 2030, reaching a market value of over $400 billion.
About ICL
ICL Group is a leading global specialty minerals company, which creates impactful solutions for humanity's sustainability challenges in the food, agriculture and industrial markets. ICL leverages its unique bromine, potash and phosphate resources, its global professional workforce, and its sustainability focused R&D and technological innovation capabilities, to drive the company's growth across its end markets. ICL shares are dual listed on the New York Stock Exchange and the Tel Aviv Stock Exchange (NYSE and TASE: ICL). The company employs more than 12,000 people worldwide, and its 2023 revenues totaled approximately $7.5 billion.
For more information, visit ICL's website at icl-group.com.
To access ICL's interactive CSR report, visit icl-group-sustainability.com.
You can also learn more about ICL on Facebook, LinkedIn, YouTube, X and Instagram.
About Orbia
Orbia Advance Corporation, S.A.B. de C.V. (BMV: ORBIA*) is a company driven by a shared purpose: to advance life around the world. Orbia operates in the Polymer Solutions (Vestolit and Alphagary), Building & Infrastructure (Wavin), Precision Agriculture (Netafim), Connectivity Solutions (Dura-Line) and Fluor & Energy Materials (Koura) sectors. The five Orbia business groups have a collective focus on ensuring food and water security, expanding information access and connectivity and advancing decarbonization and the energy transition with basic and advanced materials, specialty products and innovative solutions. Orbia has a global team of over 24,000 employees, commercial activities in more than 100 countries and operations in over 50, with global headquarters in Boston, Mexico City, Amsterdam and Tel Aviv. The company generated $8.2 billion in revenue in 2023. To learn more, visit: orbia.com
About Orbia Fluor & Energy Materials
Orbia’s Fluor & Energy Materials business is a global leader in the development, manufacture and supply of Fluoroproducts that play a fundamental role in enhancing everyday lives and shortening the path to a sustainable, circular economy. Backed by over 35 years of experience, Orbia Fluor & Energy Materials’ products are used in a vast range of applications including electric vehicles and energy storage, urban and rural infrastructure, indoor climate management, food and medicine refrigeration and even in treating respiratory conditions through the development of healthy and innovative low-GWP propellants for metered dose inhalers. Orbia Fluor & Energy Materials has 1,600 employees and 13 manufacturing facilities worldwide, serving 60 countries through a global sales and distribution network.
Forward Looking Statements
This announcement contains statements that constitute forward‑looking statements, many of which can be identified by the use of forward‑looking words such as “anticipate,” “believe,” “could,” “expect,” “should,” “plan,” “intend,” “estimate” and “potential,” among others. It also refers to a memorandum of understanding (MOU), which provides a framework for the companies to negotiate a definitive agreement.
Forward-looking statements appear in this press release and include, but are not limited to, statements regarding the company’s intent, belief or current expectations. Forward-looking statements are based on management’s beliefs and assumptions and on information currently available to management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including, but not limited to: estimates, forecasts and statements as to management's expectations with respect to, among other things, business and financial prospects, financial multiples and accretion estimates, future trends, plans, strategies, positioning, objectives and expectations, general economic, market and business conditions, supply chain and logistics disruptions, energy storage and electric vehicle growth, the potential for new COVID-19 variants, global unrest and conflict, governmental and regulatory requirements and actions by governmental authorities, including changes in government policy, changes in environmental, tax and other laws or regulations and the interpretation thereof, and war or acts of terror and/or political, economic and military instability in Israel and its region, including the current state of war declared in Israel and any resulting disruptions to our supply and production chains. As a result of the foregoing, readers should not place undue reliance on the forward‐looking statements contained in this press release concerning the timing of the transaction, or other more specific risks and uncertainties facing ICL, such as those set forth in the “Risk Factors” section of its Annual Report on Form 20-F filed on March 14, 2024, as such risk factors may be updated from time to time in its Current Reports on Form 6-K and other filings ICL makes with the U.S. Securities and Exchange Commission from time to time.
Forward-looking statements refer only to the date they are made, and the company does not undertake any obligation to update them in light of new information or future developments or to publicly release any revisions to these statements in order to reflect later events or circumstances or to reflect the occurrence of unanticipated events.
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CONTACT: Investor and Press Contact – Global
Peggy Reilly Tharp
VP, Global Investor Relations
+1-314-983-7665
Peggy.ReillyTharp@icl-group.comInvestor and Press Contact - Israel
Adi Bajayo
ICL Spokesperson
+972-3-6844459
Adi.Bajayo@icl-group.comOrbia Fluor & Energy Materials Media Contact
Amanda Rouse
OF&EM Spokesperson
+44(0) 7980 196 0090
Amanda.rouse@Orbia.com
KEYWORD: MEXICO UNITED STATES CENTRAL AMERICA NORTH AMERICA MIDDLE EAST ISRAEL
INDUSTRY KEYWORD: CHEMICALS/PLASTICS MINING/MINERALS TECHNOLOGY BATTERIES MANUFACTURING AGRICULTURE NATURAL RESOURCES
SOURCE: ICL Group LTD
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